Strategic Role of HRM

• Firm’s ability to survive and prosper is increasingly a function of the human resources they have

• Managers’ career success depends on how well they manager their firm’s resources

• Effective managers effectively manage human resources

• Control, coordination, and motivation issues

Managers Perform HR Functions

All managers – even outside the HR department – must be able to:

• Recruit and select the right people

• Effectively socialize and train people in your unit

• Evaluate their performance

• Determine reward systems that will motivate them to perform at a high level

• Help subordinates further develop to advance in their careers

General Framework of HRM

EnvironmentExternalInternal

EnvironmentExternalInternal

Organization Strategy

Organization Strategy

CompetitiveAdvantage

CompetitiveAdvantage

Human Resource Management ActivitiesPlanning, Job Analysis, Recruiting, Selecting,

Socializing and Training, Job Design, Performance Appraisal, Compensation, Development

Human Resource Management ActivitiesPlanning, Job Analysis, Recruiting, Selecting,

Socializing and Training, Job Design, Performance Appraisal, Compensation, Development

HRM Activities

Two main goals of HRM

• Getting the right people

– Planning, Job analysis, Recruiting, and Selecting

• Maximizing their performance and potential

– Socialization and training, Job design, Performance appraisal, Compensation, and Development

Failure of either goal can influence the success or failure of the other

Key Aspects of Getting the Right People

Job AnalysisJob Analysis

PlanningForecasting demand Estimating supply

Determining fulfillment

PlanningForecasting demand Estimating supply

Determining fulfillment

RecruitingRecruiting

SelectingSelecting

Getting the Right People: Planning

Planning

• Forecasting demand

• Assessing supply

• Formulating fulfillment plans

Getting the Right People: Job Analysis

Job Analysis

• Scope and depth of jobs

• Requisite skills, abilities, and knowledge that people need to perform their jobs successfully

• Job description

• Job specification

Getting the Right People: Recruiting

Recruiting

• Job posting

• Advertisements

• Employment agencies

• Employee referrals

• School placement centers

• Internet recruiting

Getting the Right People: Selection

• Written tests

• Background and reference checks

• Physical examinations

• Interviews

• Work sampling

• Work simulation

• Assessment centers

Selection Techniques

Maximizing Performance: Socialization and Training

Socialization and Training

OrientationOrientation

On-the-Job TrainingOn-the-Job Training

Off-the-Job TrainingOff-the-Job Training

Technical, Interpersonal, and Conceptual Training Technical, Interpersonal, and Conceptual Training

Maximizing Performance: Job Design

Job design: structuring or restructuring of key components of a job, including the job’s responsibilities

• Job sharing

• Reengineering

Maximizing Performance:Performance Appraisals

Performance appraisal

• Graphic rating scales

• Behaviorally anchored rating scales

• 360-degree feedback

Effective performance feedback

• Critical incidents

Maximizing Performance: Compensation

Compensation

• Pay– Pay structure - wage or salary– At-risk system or variable– Incentive plans

• Benefits– Cafeteria-style plans

• Rewards and motivation

Maximizing Performance: Employee Development

Employee Development

• Career paths

– Cross-functional job rotation

• Promotion

• Termination

• Layoffs